Why are FFRA/"Employee National Sick Leave" payments not deducted from Federal 941 payment calculated by Quickbooks for 2021 payroll? They were in 2020.

Let's find out why FFRA/"Employee National Sick Leave" payments are deducted in 2021, SG_M.

It's possible the paycheck date is 2021, not in 2020. You can review your payroll reports to see the details.

Let me show you how:

1. Go to Reports.
2. Open Payroll details, Payroll Summary, or Tax Liability report.
3. Filter your report by employee, date range, and work location, and click Run report.

Check out this link for additional information: Run payroll reports.

To correct this, you can delete those paychecks and re-create them if they're manually created. Here's how to delete them:

1. Select Payroll from the left menu, then Employees.
2. Click Paycheck List under Run Payroll,
3. Change the date range if necessary. Then select the pay checks you want to delete.
4. Click Delete.
5. Confirm deletion, then choose Delete Paycheck.

If paid through Direct Deposit, I recommend contacting our QuickBooks Online Payroll Team. They can correct your payroll and ensure your returns are recorded in 2020.

Let me know if you have follow-up questions concerning payroll. Just leave a comment below, and I'll get back to you.

Thank you for your reply, but I am still unsure the answer to my question.

Payroll date IS in 2021. Our pay period was 12/21/20 through 1/3/21.

We had an employee miss work due to contracting COVID starting late December, so his 80 hours PTO under FFCRA are being paid out partly on his last paycheck for 2020, and partly on his first check for 2021.

When I ran the last payroll for 2020, I could see that the amount we paid him for FFCRA sick leave was deducted from the 941 tax payment.

However, unlike the last payroll ran in 2020, there is NO deduction for the remaining PTO paid out on the first check of 2021 on the 941 payment calculated by Quickbooks.

My question is: shouldn't there be a deduction for our first 941 payment in 2021 for the remainder of the FFCRA PTO payments that were paid to this employee?

Please let me know if this doesn't make sense, and I will clarify further.

Thank you for getting back, @SG_M.

It's the paycheck date that matters. If the check date is in 2021, the deductions or taxes are reflected in the year. To fix the issue and post the employee/s' deductions accordingly, I suggest deleting and recreating the paychecks. Make sure to set 2020 as the paycheck date.

To delete a paycheck:

1. Click on Payroll at the left pane, then select Employees.
2. Under Run Payroll, select Paycheck list.
3. Select the paycheck you'd like to delete, then select Delete.
4. Hit Yes.

To recreate the paycheck, I recommend opening this link and check out the instructions under QuickBooks Online Payroll.

To get some answers to the frequently asked questions about processing year-end payroll, I also suggest opening the topics from these articles: 
 

• Year-end checklist for QuickBooks Online Payroll
• Common year-end questions and answers

Please let me know if you need further assistance with this. I've got your back and am always happy to help. Cheers for more success!

GREAT COOKIE CUTTER ANSWER.

TRIED THAT I BELEIVE ON 1/3/21.  QBO WOULD NOT ALLOW ME TO CREATE PAYROLL WITH A PAY DATE IN 2020, EVEN THOUGH OUR NEXT PAY DATE WAS NOT UNTIL 01/08/2021.

IT REALLY SHOULD NOT MATTER IF THE PAY DATE IS IN 2021.  ACCORDING TO IRS NOTICE 2020-21, THE PAYROLL CREDITS FOR PAID QUALIFIED SICK LEAVE WAGES AND PAID QUALIFIED FAMILY LEAVE WAGES APPLY TO THOSE WAGES PAID FOR PERIODS BEGINNING ON 4/1/2020 AND ENDING ON 12/31/2020.  WHILE THE WAGES CAN ONLY BE FOR PERIODS OF LEAVE BETWEEN 4/1/2020 & 12/31/2020, A PAYMENT OF QUALIFIED LEAVE WAGES THAT IS MADE AFTER THE END OF THIS PERIOD MAY NONETHELESS BE ELIGIBLE FOR THE CREDITS IF THE WAGES ARE FOR LEAVE THAT AN EMPLOYEE TOOK BETWEEN 4/1/2020 & 12/31/2020.    

Information above found on IRS website 1/6/21: https://www.irs.gov/newsroom/periods-of-time-for-which-credits-are-available 

SO, QBO, WHEN ARE YOU GOING TO STOP TELLING US TO DELETE OUR PAYROLL CHECKS AND SIMPLY CORRECT YOUR PROGRAM?!!  MY PATIENCE IS RUNNING VERY THIN.

I agree. The provided solution was a shoddy workaround at best. So, I did end up changing the pay check date, but that changed my tax liability for 2020 and since the tax due date had already passed for that period, now my tax payments are late. Also, I don't agree that the paycheck date should be altered because the paycheck covers labor for 2021.

This is messed up. You should be able to payout FFCRA across multiple pay periods.... but I don't really expect QB to be on top of this because the software is so buggy already.